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Professional mediator takes on NM budget impasse

Morgan Lee, The Associated Press
Published 4:04 p.m. MT Dec. 2, 2016

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In this Monday, Nov. 28, 2016 photo, state Sen. Peter Wirth, D-Santa Fe, works in his office in the state Capitol building in Santa Fe. In his unsalaried job as the next New Mexico state Senate majority leader, is positioned as a chief powerbroker for high-stakes decisions about plunging state revenues and essential government services.(Photo: Morgan Lee/AP)

SANTA FE - He is a mild mannered attorney who negotiates out-of-court resolutions to legal disputes for a living.

In his unsalaried job as the next New Mexico state Senate majority leader, Peter Wirth is positioned as a lead Democratic power broker for high-stakes decisions about plunging state revenues and essential government services when the new Legislature meets in January.

In a wide-ranging interview this week, Wirth said his challenge is keeping the doors of government open and protecting programs that are economic drivers of the state. And that could mean raising more tax dollars from gasoline sales, corporate income taxes or even the legalization of recreational marijuana — ideas that have been anathema to the state’s second-term GOP governor, Susana Martinez.

For validation, he points to Wyoming’s recent enactment of a fuel tax increase by a Republican governor and GOP-dominated Legislature.

“I think the real question is, ‘What is the case against that when gasoline is two bucks a gallon?’” Wirth said. “If the case against that is a pledge to never sign a new tax, that’s problematic to me.”

Wirth says the best opportunities for political compromise when the Legislature convenes in January involve revisions to tax exemptions, deductions and credits — areas where influential industry lobbies are certain to raise obstacles.

“It’s a billion dollars of little things, here and there,” he said. “I really hope we that we can figure out what works, what doesn’t work, and eliminate some of those to create some new revenues.”

In this Monday, Nov. 28, 2016, photo, state Sen. Peter Wirth, D-Santa Fe, poses for a photo in the state Capitol building in Santa Fe. In his unsalaried job as the next New Mexico state Senate majority leader, is positioned as a chief powerbroker for high-stakes decisions about plunging state revenues and essential government services.(Photo: Morgan Lee/AP)

As Donald Trump and Republicans stand poised to consolidate control in Washington after big Election Day wins, New Mexico will take a different turn. Democrats retook control of the state Legislature and a scandal-plagued Secretary of State’s Office that oversees elections and campaign finances.

Wirth will take the reins as majority leader from Michael Sanchez, an antagonist of the governor who lost a mud-slinging election campaign dominated by attack ads from a political committee run by Martinez’s top political adviser.

Wirth, who has served two terms in the House and two in the Senate, said the Democratic caucus is piecing together a jobs and economic development package that he declined to reveal. New Mexico has the second-highest unemployment rate in the country — 6.7 percent versus the nationwide average of 4.6 percent.

“I think there has been real frustration at the lack of a plan” for jobs, he said. “We still have divided government and the question moving forward is what can we do in the next two years, realistically. I think you will see Democrats in the House and Senate putting forward specific plans for jobs, for early childhood education, for workforce development.

We’re kind of going from a defense position to now being able to begin the groundwork to pull ourselves out of the tough economic times we’re in.”

Some leading Republicans say they already are wary of Wirth and what they see as a liberal outlook on economic policy.

Rep. Rod Montoya, the incoming Republican minority whip in the House of Representatives, sees a swing toward more progressive Democratic priorities with the elevation of Wirth and Rep. Brian Egolf, both of Santa Fe, to top leadership posts.

While Democrats are looking for a revenue increase, Montoya views the problem as a state government that spends too much.

“Trying to find common ground may be more difficult than ever,” he said.